The Big Buy: Purchasing the Home That Is Right for You This was a very interesting chapter, because it’s one of the few personal finance books I’ve ever seen that doesn’t simply insist that you buy a home as soon as you have that down payment in hand. Most of the time, it comes down to communication, as do most sticky relationship issues. Love and Money: Having It All This is basically a one-chapter compression of David Bach’s in that it focuses on many of the rough spots of mixing relationships and money.

If you’ve got a reason like this that keeps you from really attacking your finances, you should clearly specify what the idea is, think about the goals you want to accomplish, then spend time researching and trying to understand whether the idea is actually preventing you from saving or if you’re just using it as a crutch. Step Two: Excape from the Thinking Traps This chapter is very psychological in nature – it deals with overcoming psychological traps to getting your money in shape, such as “But housing is too expensive” or “But I have kids” or “But my wife doesn’t work.” For the most part, thoughts like these are just excuses to keep you from really whipping your money into shape. Instead of giving guidelines about how to get close to those target percentages, though, this section is mostly about calculating the percentages the advice comes later.

Warren suggests that a healthy distribution between these three groups is 50% must-haves, 30% wants, and 20% savings – the further away from that balance that you are, the less enjoyable (or at least more stressful) your life likely is, particularly as the must-haves get higher. Step One: Count All Your Worth The goal of this chapter is to do a complete financial accounting of where you are at, separating the money into three groups: must-haves, wants, and savings. In general, the advice is pretty standard, but there are a few interesting twists. 6 Steps To A Lifetime Of Riches The first half of the book details a six-step plan for getting your finances in order.

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